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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (178869)	7/24/2004 1:56:14 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

Amy, RE: 12.5 +17-28 = 1.5 *700 (using example above) = 1050 = 12% GV, isn't there more money with less risk to be made in this particuarl dividend compared to regular covered call approach? Or, do the forces of stock price balance out somehow? If so, how? in the premium of covered calls? Nope. If the present value of the dividend plus the stock price is that good, then the call will get exercised early, and the call owner will get the benefit of the dividend, not the person writing the covered call. Early exercise (i.e. before the ex-dividend date) is common for high dividend stocks and deep in the money calls.